Over 2 lakh Indian cases. Search powered by Google!

Case Details

C.W.T. versus DR.(MISS) C.K.ROHTAGI

High Court of Judicature at Allahabad

Case Law Search

Indian Supreme Court Cases / Judgements / Legislation

Judgement


C.W.T. v. Dr.(Miss) C.K.Rohtagi - WEALTH TAX REFERENCE No. 79 of 1991 [2005] RD-AH 5113 (28 October 2005)

 

This is an UNCERTIFIED copy for information/reference. For authentic copy please refer to certified copy only. In case of any mistake, please bring it to the notice of Joint Registrar(Copying).

HIGH COURT OF JUDICATURE OF ALLAHABAD

Reserved

Wealth Tax Reference No.172 of 1987

The Commissioner of Wealth Tax, Kanpur v.

Dr. (Miss) Chandra Kanta Rohtagi, Kanpur

With

Wealth Tax Reference No.174 of 1987

The Commissioner of Wealth Tax (Central), Kanpur v.

Dr. (Miss) Chandra Kanta Rohtagi, Kanpur

And

Wealth Tax Reference No.173 of 1987

Commissioner of Wealth Tax (Central), Kanpur v.

Dr. (Miss) Chandra Kanta Rohtagi, Kanpur

And

Wealth Tax Reference No.79 of 1991

The Commissioner of Wealth Tax, Kanpur v.

Dr. (Miss) Chandra Kanta Rohtagi, Kanpur

Hon'ble R.K.Agrawal, J.

Hon'ble Rajes Kumar, J.

(Delivered by R.K.Agrawal, J.)

Out of the four references which relate to the same assessee, the Income Tax Appellate Tribunal, Allahabad Bench ''B' in Income Tax Reference No.172 of 1987 and Income Tax Reference No.174 of 1987 has referred the following questions of law under Section 27(1) of the Wealth Tax Act, 1957 (hereinafter referred to as "the Act") for opinion to this Court:-

"1. Whether, in law and on the facts, the Tribunal was justified in excluding the value of property at 16/72, Civil Lines, Kanpur from the hands of the assessee ?

2. Whether transfer of an immovable property by any person without any consideration to a Trust which is not regarded as Charitable Trust, is covered under the definition of dedication/endowment ?

3. Whether to complete such transfer as described in question no.2 above, there is no need of an instrument duly registered as prescribed in Section 123 of the Transfer of Property Act as well as under Section 17 of the Indian Registration Act, 1908?"

whereas in  Income Tax Reference No.173 of 1987 and Income Tax Reference No.79 of 1991 has referred the following questions of law:-

"1. Whether in law and on facts of the case the Tribunal was justified in excluding the value of property No.16/72, Civil Lines, Kanpur from the total wealth of the assessee ?

2. Whether in law and on facts of the case the Income Tax Appellate Tribunal was justified in holding that the assessee ceased to be the owner of the property with effect from 1.4.1977 ignoring the fact that transfer of the property was not valid and complete in absence of an instrument as prescribed under Section 123 of the Transfer of Property Act duly registered under Section 17 of the Indian Registration Act, 1908?"

The references relate to the Assessment Years 1978-79, 1979-80, 1980-81, 1982-83 and 1983-84.

Briefly stated, the facts giving rise to the present petition are as follows:-

The assessee was running a nursing home in premises no.16/72, Civil Lines, Kanpur. She made a deed of declaration dated 18.4.1976 creating a charitable trust, namely, "Chandrakanta Jawaharlal Public Charitable Trust" by setting apart a sum of Rs.1,100/- which constituted the corpus of the Trust. She dedicated her nursing home and hospital to the said Trust which included the building situated at premises no.16/72, Civil Lines, Kanpur with effect from 1.4.1977. The Trust had been granted registration under Section 12A of the Income Tax Act, 1961 by the then Commissioner of Income Tax. Accordingly, the assessee did not include the income derived from the nursing home as well as from the property in her return of income. The Wealth Tax Officer held that in the absence of a deed of transfer which was essential, as per the provision of Section 17 of the Registration Act, the said transfer of immovable property was not full and complete. He, therefore, opined that the property no.16/72, Civil Lines, Kanpur remained in the ownership of the assessee and accordingly included the value of the same in her hands, which order was upheld by the Appellate Assistant Commissioner. However, the Tribunal has reversed the two orders and has held that for dedicating the immovable property no.16/72, Civil Lines, Kanpur to the Trust, the registration was not required. While holding so the Tribunal has followed its earlier order dated 26.12.1985 passed in I.T.A.No.1471 of 1983. The value of the property was, therefore, deleted at the hands of the assessee.

We have heard Sri R.K.Upadhaya, learned Standing Counsel for the Revenue and Sri Pankaj Bhatia appearing for the assessee.

We find that the similar question came up for consideration before this Court in the case of the same assessee in Income Tax Reference no.103 of 1987 and Income Tax Reference no.125 of 1990, Commissioner of Income Tax v. Chandrakanta Rohtagi, decided on 21.10.2005 and this Court has held that there was no necessity of the deed of declaration dedicating the property to the Trust and it did not require registration. This Court has answered the similar question, being question no.1 in Income Tax Reference No.103 of 1987, in the affirmative, i.e., in favour of the assessee and against the Revenue.

Respectfully following the aforesaid decision, we answer the question no.1 in the affirmative, i.e., in favour of the assessee and against the Revenue.

So far as the question nos.2 and 3 are concerned, we may mention here that in the statement of case drawn by the Tribunal, which has not been disputed by the Revenue, the Tribunal has specifically stated that the Trust was granted registration under Section 12-A of the Income Tax Act, 1961 by the then Commissioner of Income Tax. Thus, the question nos.2 and 3 proceeds on a misconception and are, therefore, returned unanswered. There shall be no order as to costs.  

October  28, 2005

vkp


Copyright

Reproduced in accordance with s52(q) of the Copyright Act 1957 (India) from judis.nic.in, indiacode.nic.in and other Indian High Court Websites

Advertisement

dwi Attorney | dui attorney | dwi | dui | austin attorney | san diego attorney | houston attorney | california attorney | washington attorney | minnesota attorney | dallas attorney | alaska attorney | los angeles attorney | dwi | dui | colorado attorney | new york attorney | new jersey attorney | san francisco attorney | seattle attorney | florida attorney | attorney | london lawyer | lawyer michigan | law firm |

Tip:
Double Click on any word for its dictionary meaning or to get reference material on it.